When interest rates increase, the opportunity cost of borrowing will decrease.

Name: When interest rates increase, the opportunity cost of borrowing will decrease.
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When interest rates increase, the opportunity cost of borrowing will increase, not decrease. This is because it becomes more expensive to borrow money, so borrowers will have to pay more to lenders in interest. Therefore, the opportunity cost of borrowing, or the cost of missing out on alternative uses for the money, increases.

When Interest Rates Increase, the Opportunity Cost of Borrowing Will